PitchBook News - PE plugs into data centers

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The Daily Pitch: VC

January 9, 2025

The Daily Pitch is powered by PitchBook’s industry-defining research and best-in-class data

👋 The former head of Blackstone's GP stakes business launched a new private equity secondaries business. Mustafa Siddiqui's SQ Capital will do LP- and GP-led secondary deals in the middle market. Full story.

😅 Relief is coming to venture LPs. Distribution yields should increase for the first time since they peaked in 2021. Don't hold your breath that higher fundraising will immediately follow. Dive in.

Plus...
• Mixed reality startup Infinite Reality doubled its valuation to $12.5 billion after ditching its SPAC
• 10 private credit firms now manage a third of the industry's capital
• Law firm tech investment recovers

PE takes pick-and-shovel approach in AI gold rush

(Quantic69/Getty Images)

Digital infrastructure GPs spent over $100 billion in data centers over the last five years, capitalizing on an escalating AI arms race and the rapid growth of the digital economy. To some, this market holds greater appeal than traditional real estate or infrastructure investments for the promise of steady contractual cash flow.

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Tech wraps up 2024 with stability in VC deals

VCs are riding a wave of optimism heading into 2025, demonstrated by consistent fundraising activity and technological innovation, according to our recent VC Tech Survey.

Most investors who responded to the survey indicated that the amount of equity acquired in VC funding rounds was consistent throughout the latter half of 2024, hinting at stability in the VC investment climate.

Investors remain cautious of oversaturation in certain markets—highlighting chatbots, general-purpose AI, healthcare and fintech. But they continue to show confidence in the disruption potential of other targeted AI innovations.

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Since yesterday, the PitchBook Platform added:

15

VC valuations

2893

People

804

Companies

41

Funds

See what our data software can do

The Daily Benchmark:
2015 Vintage Global VC Funds

Median IRR

16.10%

Top Quartile IRR

24.36%

0.49x

Median DPI

Select top performers

Outlander 1 Archimedes

Index Ventures Growth III

Anthos Capital III

*IRR: net of fees

84 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Social media startup BlueSky is raising a new round led by Bain Capital Ventures that values the company around $700 million, Business Insider reported.

Livestream shopping platform developer Whatnot raised a $265 million Series E led by Avra, DST Global and Greycroft at a $4.97 billion valuation.

Evergreen Nephrology, which specializes in care for patients with kidney disease, raised a $130 million round led by Rubicon Founders and Oak HC/FT.

Geneoscopy, a startup developing tests for gastrointestinal diseases, raised a $105 million Series C led by Bio-Rad Laboratories.

Movement Labs, a startup building a layer-2 blockchain on Ethereum, is raising a $100 million Series B at a $3 billion valuation, Fortune reported.

Netherlands-based Alesta Therapeutics, which develops treatments for rare diseases, raised a €65 million Series A led by Frazier Life Sciences and Droia Ventures.

Nomupay, a Dublin-based payments startup, raised $37 million from investors including Endeit Capital and Uneti Ventures.

Nema Health, which provides care for people with PTSD, raised a $14.5 million Series A led by Deerfield and CVS Health Ventures, Axios reported.

PE Deals

Rheingold Capital acquired Schüco Interior Systems, a Germany-headquartered interior systems supplier for furniture and industrial purposes.

Lovell Minnick Partners agreed to make a strategic growth investment in UK-based financial services consultancy Broadstone.

Main Capital Partners made a majority investment in UnameIT, a Netherlands-based sales software for car dealerships.

Baird Capital made a growth investment in London-based life sciences consultancy Newmarket Strategy.

Auréa Group invested in Nutraceutical Research Innovations, owner of US-based haricare brands Zenagen and ACT/IV.

Apparel brand True Religion has been acquired by ACON Investments and SB360 Capital Partners.

Aperture, a company that provides forensic and litigation services, has been acquired by Genstar Capital.

The digital education division of publisher Wise Music Group has been acquired by New York-based PE firm Achieve Partners.

Exits

Calpine, an electricity generation company backed by Energy Capital Partners, CPP Investments and Access Industries, is in talks to be acquired by Constellation Energy in a $30 billion deal, Bloomberg reported.

Mobile telecommunications company Odido, based in the Netherlands, is planning to launch a €1 billion IPO, Bloomberg reported.

Customer data platform developer Lytics has been acquired by San Francisco-based startup Contentstack.

IDRx, a biotech company focused on cancer treatments, is in talks to be acquired by UK-based drug developer GSK.

Chicago-based food startup Simple Mills has been acquired by NYSE-listed Flowers Foods for $795 million, Axios reported.

Fundraising

San Francisco-based investment firm FTV Capital raised $3.4 billion at the close of its eighth flagship fund, and $651 million for its first vehicle dedicated to smaller investments.

Bonaccord Capital Partners raised $1.6 billion for its latest fund, which is targeted at buying stakes in GPs.

Trinity Ventures closed its latest VC fund on about $285 million in capital commitments, according to SEC filings.

Chart of the Day

Source: 2025 Industrial Technology Outlook

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PitchBook News - PE plugs into data centers

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